Corporate Finance Assignment/ Professional Essay Writers

QUESTION 1

1. The most efficient of all the different types of secondary markets is the
2. auction market.
3. direct search market.
4. dealer market.
5. broker market )5 points).

QUESTION 2

1. Which of the following is not a widely known stock market index?
2. The Dow Jones Industrial Average.
3. The OTQ Composite Index.
4. The New York Stock Exchange Index.
5. The S&P 500 Index. (5 points)

QUESTION 3

1. Which of the following statements about preferred stock is FALSE?
2. Preferred stock has a higher-priority claim on the firm’s assets than the common stock.
3. Failure to pay dividends on preferred stocks will result in a default.
4. Preferred stock has a lower-priority claim on the firm’s assets than the firm’s creditors in the event of default.
5. Preferred stock typically pays a fixed dividend. (5 points)

QUESTION 4

1. Preferred stock is sometimes treated like debt security because:
2. legally preferred stock is debt security.
3. preferred dividend payments are similar to bond interest payments and are fixed in nature regardless of the firm’s earnings
4. preferred dividends are deductible from taxable income just like interest payments on bonds.
5. preferred stockholders receive a residual value and not a stated value. (5 points)

QUESTION 5

1. Which of the following statements is TRUE?
2. Preferred stockholders are considered to be the true owners of public corporations.
3. Dividends paid to preferred stockholders are usually not fixed.
4. Preferred stockholders do not typically have voting rights.
5. Preferred stock can never be converted to common stock (5 points).  Get Finance Help Today